Sector overview

Success breeds success and this adage certainly epitomises the Czech Republic, which hosts one of the highest concentrations of automotive-related manufacturing and design activity in the world.

With passenger car production at 107.5 vehicles per 1,000 persons, the Czech Republic has maintained its supreme position among world automotive leaders in terms of per-capita output. It is also among the fifteen largest global passenger car producers by volume. The Czech automotive industry employs more than 150,000 people and accounts for more than 20% of both Czech manufacturing output and Czech exports.

The Czech automotive centre of excellence plays a key role not only in the European but also in the global perspective. Based on the country's century-long engineering tradition, good infrastructure and skilled workforce, it significantly contributes to automotive manufacturing and R&D. Over the course of last fi ve years, these investors created over 10,000 new jobs and invested more than EUR 1.4 billion in the Czech automotive industry.

While the country has the capacity and resources to accommodate three major carmakers - Škoda Auto (Volkswagen Group), TPCA (Toyota/PSA joint venture) and Hyundai Motor Manufacturing Czech - and holds excellent business opportunities for suppliers, the Czech Republic is poised to consolidate its position as one of the leading European centres for automotive-related design and R&D activity.

Investment map

Reasons to invest

  • Strategic location in Central Europe; direct access to the EU market of 500 million consumers;
  • time and logistics advantages
  • Highly integrated into the European automotive value chain
  • Stable business and political environment - EU and NATO membership
  • Well-developed transport and telecommunications infrastructure
  • Robust supplier base
  • Highly educated workforce, good access to university graduates with technical education
  • Strong innovation potential for R&D projects
  • Positive approach of the Czech government, investment support covering up to 25% of eligible costs through a transparent system of investment incentives
  • First-class support from CzechInvest


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Attached files

Description Type Size Date

Automotive in the Czech Republic

Brochure: the sector at a glance • key investment benefits • hubs of major component producers etc

3.45 MB 10 Oct. 2017